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Business Valuations

December 7, 2015 by Hoppel Design

If either or both parties involved in a divorce own a business, or a portion of some type of business, the ownership interest is usually viewed as property subject to distribution in the allocation of the marital estate. In this case, a value must be placed on the ownership interest, the business, and/or real property owned by the business.

The attorneys at MacElree Harvey would seek an expert in business valuation in order to assess the business as such an appraisal is a complex process involving numerous factors. An expert would review the assets and liabilities related to the business, including both tangible and intangible property, as well as the income generated by the business, offset by its expenses. The calculation of revenue varies with each business, and the expert would vigilantly analyze the business’s financial records in order to make an accurate determination of profit. The expert would also decide which valuation method is to be used in order to properly value the particular type of business.

It is important that you discuss this aspect of your case with your attorney in order for any business interest to be valuated as close to the time of equitable distribution as possible in order to establish the true marital value. The experienced family law attorneys at MacElree Harvey will discuss the particulars of your situation and the need, if any, for a business valuation.

If you would like to schedule a consultation, please contact us at one of our offices below or submit the contact request form.

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